york, 3:00 p.m. in london, and 30 minutes into the trading day in the united states. from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. welcome to "bloomberg markets." vonnie:vonnie: we have reemergence of fears for the coronavirus. let's take a look at where markets are for the u.s. the s&p 500 down 0.4%. also, some jitters about changes in the u.k. cabinet, which we will get to any moment. of course, earnings coming out all day long. forty of positive movements individual companies, including semiconductors. applied materials got an upgrade today. it is up 3%, having a good impact on other semiconductors. the dollar index is up 99, but there is a pause in the rally. the 10 year yield at 1.61% today. guy: european stocks down by around 0.5%.

that,und, you mentioned we are trading north of $1.30. to be thek is going new chancellor of the exchequer in the u.k.. sajid javid has quit. the sense seems to be that the new chancellor will be a pushover for boris johnson in the cabinet. as a result of which, we are expecting the budget in four weeks to be a bit more expensive than first thought. euro-dollar continues to be weak. that obviously has a big impact on the dollar indexes. $1.0856.ading at the perception seems to be that the risks lie to the downside, and the european economy is likely to suffer as a result of what is happening in china. the data going into the coronavirus story really not good, and that is what we are seeing priced in right now. slight we are seeing a

pause in the dollar thing to some external forces. coronavirus re-acceleration and the departure of the u.k. chancellor of the exchequer among them. we are joined by christian lawrence, rabobank rates strategist. primarily, what is this dollar pause thanks to? the dollari think pause is going to be temporary. i am very bullish the dollar as we look at the year ahead. think we will continue to see safe haven flows. i think it can be attributive to some inflows going into the japanese yen, and of course, you mentioned the pop we have seen in sterling. certainly when we look at the euro-dollar exchange rate, that is a story of break out from the record low volatility that we saw just over a week ago, and really positioning switching to the downside. i dollar strength story for the euros, that's for sure.

how seriously are you taking coronavirus fears and what it might due to the markets now that we've had this exponential explosion in diagnoses? trades havearry certainly been quite profitable if you are in the right currencies. currencies this year are the indonesian were p a andhe indonesian rupee the mexican peso. if you adjust for volatility and liquidity,ill is -- it is the mexican peso. of course, and third place is the dollar. with respect to the coronavirus, it is very difficult to know how this will pan out. at the moment, chinese gdp is 30% of gdp.

for the sars virus, it was only around 8%. the impact is certainly much larger than it was back then. that being said, i am certainly not an expert when it comes to viruses. that is really the difficulty here. we know that there is a symptomatically transition -- there is asymptomatic transmission, which makes the numbers difficult to predict. we also know air travel has risen exponentially over the years. there is either going to be a huge slow down for global growth, or we will see things slow down. it is very difficult to know. guy: can i come back to euro-dollar? is this euro weakness or dollar strength? christian: a lot of it is positioning. we were at record l volatility just over a week ago, whiskeys -- a week ago, which is quite remarkable. we saw a lot of stops being triggered, then saw the momentum

players jump on that move. . big jump into euros shorts i think this move we have seen over the last couple of days is more about positioning then it is any underlying story. that being said, i do think we can probably get a bit of stabilization around these levels. we have moved quite a long way pretty quickly. when we look further out on a longer timeframe, it has to be ly moreat i'm certain bullish the dollar than the euro. i think growth in the u.s. is going to be much weaker this year than last year, but it does feel like in general, the markets are a buy america viewpoint. guy: let's talk about what is happening with sterling. such he jotted has departed us -- sajid javid has departed as chancellor of the exchequer. is this a case that the countries that spend money with low rates are going to be

rewarded by the foreign exchange markets because it is likely to generate higher growth? is that something i can take away from what i have seen today ? christian: i think it really depends which currencies you are talking about. if you're talking about reserve currencies like the u.s. dollar, perhaps there is that argument to be made. if we are talking about other currencies, perhaps the ones in emerging markets, i don't think that is necessarily the case, but we know we need more in the way of fiscal expansion. the difficulty is that levels are already very high globally. the world is far more leveraged than it was back in 2007. the problem is loose monetary policy is inflating asset prices. it is not providing the real growth we need. so i think we see more in the way of fiscal expansion. i don't think we have any other choice.

vonnie: thank you. we will return to that topic. that is christian lawrence, rabobank rates and fx strategist. coronavirus cases soaring overnight with revised metrics for diagnosis. joining us from beijing is tom mackenzie. is there a sense that this is re-accelerating now? : certainly, what they have done now in china is lower the barrier in terms of how they count number of new cases. that is why you saw an almost 45% surge in new cases. the global total now is about 60,000. deaths above 1300. what we are hearing from the experts is this is seen as a welcome step by china, even if the headline numbers are pretty shocking. it is a more realistic way of

measuring the outbreak of this virus and how far it has spread, but of course, it also checks are assessments in terms of whether we are getting to a peak on this. for many, this is a reminder that we are very far away from seeing this virus peak. in terms of the international ramifications, we have seen the andt death in japan, previously a death in the philippines and in hong kong. applications we are trying to weigh out closely. we have heard from senior leadership in china that they want to see more relaxed and flex will monetary policy, putting an emphasis on the physical tools they have at their disposal. they also said they want to support foreign direct investment in china, particularly big projects. that is what we are hearing from the top leadership. it really comes down to them limitation. there is a balancing act for

officials who want to ensure that the virus is kept at bay and in check, but they want factories firing up again. in terms of the fiscal stimulus we have seen, that bond issuance from local governments but they will be spending on infra structure as well, that is part of the focus for officials here. but again, it is about weighing out the numbers of infection rates as they continue to rise, with the emphasis on policy makers to get the economy back in second or third gear. vonnie: thank you for that update. that is bloomberg's tom mackenzie in beijing. let's get to the bloomberg first word news now here's viviana hurtado. in the u.k., chancellor of he javid quit after a showdown -- the u.k., chancellor of the exchequer sajid javid quit after a showdown with prime minister boris johnson. his deputy, rishi sunak, is the new chancellor.

mr. johnson had be planning a readily simple overhaul of the team and wanted to keep javid in his job. british regulators are investigating barclays ceo jes staley and his relationship with jeffrey epstein, the disgraced financier and convicted sex offender who died in prison. staley says he deeply regrets his license up with epstein. the ceo retains the full confidence of the board. the u.s. considering a plan to increase its long-standing feeling on tariffs to trigger a new negotiation relish and ship with nato members. the trump has long complained that other countries can charge higher tariffs on certain products than the u.s. does. the parent of t-mobile wants to renegotiate the $26.5 billion takeover of sprint.

they want a lower price because sprint shares have fallen. the two sides have not yet started talks about new terms. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. guy: thank you very much indeed. we are going to take you to capitol hill. president trump's federal reserve board nominees being questioned by the senate banking committee. turning out to be quite an event, let me assure you of that. we will have more of the headlines and bring them to you as we get them. getting a shelton hard time on capitol hill. this is bloomberg. that would be a quantitative measure. >> what does your gut tell you? >> my gut? >> i'm going to lend this plane. ♪

vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's get the details with abigail doolittle. abigail: a bit risk off. take a look at the global equity indexes around the world. the s&p 500 down for the first time this week, down about 0.4%, the worst day in about a week as investors are now really focusing in on the coronavirus strategy and what it could mean for the global economy. downgraded, down 1%. this risk off tone, investors getting out of stocks to some degree, confirmed by the fact that they are getting into haven bonds. the 10 year yield is down three

basis points. from the start of the coronavirus, we have been broadly tracking the breakout. let's take a look at across asset check in the bloomberg terminal. most of these assets are down over this time. on bottom, we have crude oil and copper. china, of course, a big user of natural resources. the shanghai composite down about 5%. the dow transports down 3%. the s&p 500 tied. hit,taking a bit of a unrelated to the coronavirus, take a look at the your over the last year -- the euro over the last year. breaking down to its lowest level in which three years. looking for support, for sure. vonnie: abigail doolittle, thank you for that update. house republicans are unveiling climate change proposals first suggested by the likes of al gore, most recently by marc benioff at the world economic

forum in davos. critics are suggesting the legislation will go nowhere, that it is piecemeal, and fossil fuel friendly, but it does mark a change for the gop on climate. congressman bruce westerman joins us now. our thanks to you, congressman. the president is pulling the u.s. out of the paris accord. he's also working to change regulation on things like climate. why embrace this now? cynics would suggest that it is because polling suggests that all voters really do care about climate change. rep. westerman: it's great to be with you this morning. we are talking about planting one trillion trees, not just in the united states, but across the globe. if you look at what we can do that is proactive and pragmatic as far as making our environment better and being good stewards of what we have, there's really

nothing better out there than planting trees. trees are the natural carbon catching device. they store the carbon and release oxygen back into the atmosphere. there's a lot of research on this. there was a research paper from switzerland that said if we do we could050, the man-made of carbon released since the industrial revolution. i am led to see that the president endorsed this and mentioned it in his state of the union address. guy: good morning. the european union says it is going to be carbon neutral by 2050. when do we see a similar objective laid out by the united states? rep. westerman: the united states is actually doing a better job at reducing atmospheric carbon than anyone else in the world. the data shows we have reduced more carbon than the next 12 countries combined. this is something that is not

new that we are tackling the problem of atmospheric carbon, but trees can be a critical part of that equation. if you think about all of the talk that's out there on reducing the amount of carbon that goes into the atmosphere, what you do with the 411 parts per million of carbon dioxide that is already in the atmosphere? there's nothing better than a tree using natural photosynthesis to take the carbon out, clean the air, and store it in wood. this is aimed at making our existing forests more healthy so we can store more carbon on our existing land, plus using that would -- guy: yes, batangas men, the european union has a target. it is going to be net carbon neutral by 2050, and that is encouraging an awful lot of companies and consumers in europe to make the decision that they need to do their bit as well.

do you think there is a danger ,hat the u.s. gets left behind behind europe in this challenge? rep. westerman: not at all. right now the united states is ahead of europe. some kindave to set of goals like the europeans are doing. we are actually inventing the technology. we are doing the practical, proactive things to reduce the amount of carbon emissions. what do you do about the carbon that's already in the atmosphere? forests are the key to pulling that carbon out of the atmosphere. it is the largest scale, most economical tool we have available to clean the air. at the same time, need to be investing in research and development. the trillion trees act not only polls carbon out of the air, but also has components of it that would reduce the, to carbon going into the air because we are talking about sustainable building. vonnie: there's no doubt that in

100 years, it will be a very nice thing to have had one trillion trees planted over that time, but realistically, emissions need to get reduced now. aside from that, where are you going to get the budget and the land to plant these trillion trees? rep. westerman:rep. westerman: i'm glad you asked that. part of this --rep. westerman: i'm glad you asked that. part of this program allows ,onprofits and ngos to partner and we are getting an outpouring of support for people who want to join in implanting these trees. the other thing you've got to remember is the trees were regenerating and reproducing long before we knew how to put seeds in the archery. -- in the nursery. we can cause natural reforestation that would far outweigh anything we could plant. title, butchy there's more ways to get to one trillion trees than just going out implanting them, although

-- is he upnted 350 yet planted three under 50 million trees in one day. guy: thank you for spinning your time with us here at bloomberg. republican congressman bruce westerman. let's talk next about what is happening in the u.k. sajid javid's are presently javidng today -- sashi surprisingly quitting today -- sajid javid surprisingly quitting today. we will talk about what is happening next in the u.k.. the budget is about to be upon us in four weeks. this is bloomberg. ♪

♪ guy: the pound is higher today. u.k. chancellor of the exchequer so g javid resigning -- resigning.ajid javid this was a surprise, though. we are joined by bloomberg opinion's therese rafael. for javid to be pushed aside,

we have a power grab taking place. we have two people in number 10 saying we want the authority. we want control of the treasury. javid having none of that. is that a reasonable assessment? therese: the short story is that so g javid was not to the -- was that sajid javid was not to the -- of of emmett cummings dominic cummings. traditionally times when number 10 and number 11 have a certain tension. number 10 is where the prime minister sits. number 11 is where the chancellor sits. a point ofeally made agreeing with boris johnson, being on message, sort of going

along with his spending plans, and at the same time, there have been growing tensions between javid and cummings spilling out into the press that javid was unhappy that certain spending decisions were being taken away from him. we have seen that come to a head over this issue of special advisors. two of javid's advisors were sacked in late summer when cummings was unhappy with them. we now have a changing of the guard in the chancellery. at the moment, less than a month before the new budget, and at a time when the country is making some pretty big tray decisions that will also impact revenues and expenditures. guy: the pound is up. there's excitation that the new chancellor does not have the authority to limit the purse strings. is that correct? therese: i think rishi sunak has

been a rising star in the conservative party ever since june, when he wrote that "times" op-ed supporting johnson's bid to take over the party leadership, but he will not be seen as a strong, independent chancellor that perhaps javid was. he doesn't have the heft in the party quite yet. it would be very difficult for boris johnson to fire a second chancellor. perspective, sunak does have some ground to stand up to number 10 if he finds that there are issues he wants to push back on. guy: thank you very much indeed. interesting day in u.k. politics. this is bloomberg. ♪

♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in with the

bloomberg first word. here is viviana hurtado. viviana: the number of cases in by hubei province has soared 45% to almost 50,000. spikebrupt reversing the trend on the the coronavirus may be under control. the coronavirus is blamed for what is excited to be the first drop in oil demand in more than a decade. that is coming from the international energy agency. the iea says the virus is battering china's economy. it says at this stage, it is hard to be quiet about the impact. southwest airlines extending the absence of the 737 max from its schedule until after august 10. the airline says not having the max cost it millions in

operating income last year. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. vonnie: thank you. bob faith is the ceo and founder of greystar. all told, $36 billion in assets under management globally and 100 13 markets. he joins us now. also with us, bloomberg senior deals reporter ed hammond. bob, let me chat with you first. we have been talking a lot about the federal reserve, the huge emotive liquidity that's been injected into the economy. it is possible that monetary policy is really exhausted at this point, but it has meant a huge amount for lps and those looking for alternative real assets. tell us where you are in terms of the cycle. are you looking to buy more, to

raise more money? bob: we are still very bullish about the residential space. , the greatof the day thing about rental residential is it really is a demographically driven asset class rather than business cycle driven, so i think a lot of people are attracted to rental residential today because of that countercyclical stability going into a potential downturn. there is still a lot of interest around the globe. ed: talk to us about how you manage going into a potential downturn. it was hit hardest when we went into the last downturn. how do you mitigate that risk? bob: there's a couple of different ways. for one, we don't use a lot of leverage in our various structures. most of the people that got in a lot of trouble during the global financial crisis sibley had too much leverage. the great thing about apartments

is it is very much a demographically driven asset class, so while you go into a recession or downturn, people still have to live somewhere. you might not like the price, but you can always fill up a rental residential. ed: how has the demographic shifted? there's a lot of talk about how renters are now using their apartments to do something else, whether it is airbnb or some other outlet for monetizing. how has that changed the way you guys approach it? bob: a renter today has a lot of different options as to how they can monetize their space. so as we are developing new properties, that is one of the things we are thinking about. what are the services we can provide, the common areas we can provide. it is getting down to affordability. andworld is getting harder more extensive to live in the great urban cities around the world, so we have got to use technology and find ways to make it a portable -- make it affordable for people who live

in the great cities of the world. guy: good morning. let's talk about what is happening in the u.k. looks to makeusly some investments in the united kingdom. student housing is one of the areas of focus. a lot of investors i talked to in your space want to get into the student housing market here in the u.k. what does competition look like, and how much more do you think yields are going to compress? bob: when we first got into the student housing space, it wasn't really considered an institutional asset class, but i think people have said the same things about student housing that they are saying about rental residential in that it is is -- in that it is a very residential class. there were higher cap rates on student housing then conventional rentals. you are still seeing that compressed. in the u.s., we are seeing student housing and conventional multifamily very close to the same return expectations for investors.

it could still continue to compress in the u.k., and i expect it will be. guy: investors are pushing out into more secondary cities here in the u.k., but also in the united states as well. is that where the risk lies? when the downturn comes, do you think where the risk lies in student housing, and the secondary and tertiary cities? bob:bob: that is always the risk when a cycle gets long. people start moving into secondary and tertiary markets, where you just don't have the scale in most markets that you do in the big cities of the world. the challenge for that is it doesn't take very many assets to get supply and demand out of whack and a smaller city. that is what you have to watch for, and that is why we have stayed very focused on the markets, the big universities in the u.s.. vonnie: yesterday, we were talking about the more niche

markets, things like life-sciences and so on, and getting into partnerships and so on. 150 or so basis points generally. with that be what you are aiming for is a rate of return? what would happen if there were a change in administration? bob: two parts to that question. the first thing relates to the different niche markets. i do think a premium of 100 150 basis points is what people want to see when they look at something that is not quite as liquid as your more normal food group, if you will. you are attracting a smaller piece of the investment universe to be able to go after that. as far as the change in administration, the great thing about housing is it is demographically driven. regulatory environments and impact are very local.

i would say it is more of a local market level that we are going to see regulatory impacts rather than a national administration change. ed: we have a change of government in the u.k.. we have gone through a hurdle in brexit to getting it done. what do you need to see from the government in the u.k. in terms of redtape, in terms of deregulation, to actually make this environment? i will give you a really great example of what needs to continue to happen. we are starting to see this with the greater london authority in the regulatory stance around rental housing. because the u.k. had primarily been a for-sale product market, they had a lot of regulations about making everything for bedrooms -- everything four bedrooms or three bedrooms and a certain number of units per

floor. most renters don't need a big family unit. they want a studio, a one bedroom. we worked with the gla in greenberg and bought the old blacksmith klein world headquarters -- the old gsk headquarters. we worked with the greater london authority to change regulation so we were actually able to build 2000 units, not in bigger buildings, but making it a per-unit mix. that is how we will get supply in london, where there is absolutely a housing shortage, and particularly housing that is affordable for the younger generation. vonnie: we will have to leave it there, but you will have to come back and give us an update soon. to bob face, greystar real estate, and ed hammond -- bob faith, greystar real estate,

and ed hammond. guy: this is bloomberg. ♪

♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." the impact of the coronavirus being felt globally. our is taking a hit at its showpiece -- barcelona is taking a hit as its showpiece tech show is canceled due to concerns. joining us for her first many view -- her first interview as minister of foreign affairs is laya.s arancha

minister, congratulations on your new role. isiously, the first big task to deal with the coronavirus. the decision was made to cancel in barcelona this year. how do you anticipate coronavirus will affect the economy of spain? >> i think what we have to do at the moment is keep calm and follow the instructions coming from the world health organization and the european union. we think that if we do that, we will have a good chance of managing coronavirus. and get toobate worried or too hysterical, it is going to have an impact. it is not necessarily what health authorities are telling us. what health authorities have been telling us is that it is a perfectly safe place. so keep calm, make sure that we don't exacerbate the risk and

manage the situation with solidarity to china, the epicenter of coronavirus. vonnie: spain has a new government, but it is a little bit fragile. there's no majority, if you like. how does the european government like yourself exert more influence, when already domestically, it is a little fragile? ms. gonzalez: it is a government that has the same majority, like so many governments around the world. is findingn today the necessary balance to govern, to take the decisions looking at the future. from that point of view, we feel confident that this government can do that. we have started by addressing the issues at home, growth, inequalities, and balances we have inherited from the way the financial crisis of 2008 was

ecologicalcing an transition, and making sure believe no citizens behind. a we do that, we will have solid majority of spaniards behind us, and we will have a stronger voice in europe. good morning. one government that does have a big majority is boris johnson's in london. i am curious as to whether or not, considering your trade experience, you see boris johnson's objective of getting a trade deal done with the eu by the end of this year as being feasible. the indications are that the u.k. is prepared to accept some trade friction and does want some divergence. what are your expectations? ms. gonzalez: that we find an agreement that is good for the u.k. and good for europe. deal because basis

our relations are extremely important for us for the future. of course, the next relationship will not be as strong as the current one because the u.k. will not be a number of the european union. what matters to us is a level playing field. no unfair competition between u.k. and european union in the future. guy: by the end of this year? value theez: we polity of the deal, but if the u.k. wants to have it by the end of the year, we will have to have a good pace of work from now on. essentially, it is in the hands of the u.k. vonnie: forecasts for growth are coming down. i am curious how concerned you any potential for additional tariffs against the eu.

ms. gonzalez: for us, the religion to put the eu is very important. it is a relationship that works well. it works well for our businesses, for our civil society. we want to keep it like this. of course, we can improve it. let's do that through negotiation. it through ath negotiation, strengthening our relationship because that is what is mutually beneficial. 60% of investments in the u.s. are coming from europe. responsibility to manage our relations in a responsible manner that is cooperation rather than unilateralism. insure how does spain that it has a strong voice in negotiations? ms. gonzalez: we will be strong if the european union is strong. the european union will be strong if each one of its member

states invests in making the european union stronger. we are ready to work with our european partners to strengthen to give it aunion, bigger role when the world once europe to play a more decisive role. guy: just in terms of that unity that you see, how easy is that going to be to achieve when it comes to the united states? what effect is the relationship currently having on spain? we see a lot of talk about digital taxes being imposed. do you see europe sticking together on these key areas as it negotiates the united states? ms. gonzalez: in the area of international trade, the european union negotiates on behalf of all number states, and does that on the basis of a mandate. we have given the european

commission a mandate to do that. they engage in a discussion with the united states. as long as we keep it like this, defend ourable to interests. that is what has happened up we willw, and i think continue to invest in ensuring the european voice is one mouth, one message, strong. guy: ok. but we are seeing, for instance, france going out on its own. do you see that is problematic in terms of the unity you are talking about? i agree with trade. theoretically, there is only one voice which is coming out of europe. but on the other hand, there are other areas which are company hitting matters, in which europe is not unified -- which are complicating matters, in which europe is not unified. ms. gonzalez: the issue of digital tax, which is important

in europe, is also important to spain and germany and to italy because we see in today's spacey, when the digital is gaining ground, we cannot just simply continue to tax the analog parts of our economy without taxing the digital parts of our economy. we are united in that, and we are united with the u.s. on that. the question is how we do that. we have agreed that we prefer to , havingthrough the oecd one way of taxing the digital space. but also, we have made it clear that if negotiations don't progress, we will do this individually as countries. citizens want fair taxation, and that means doing the digital part of our economy. vonnie: we would like to thank you for your visit, and congratulations on your new appointment. once again, this is minister

arancha gonzalez laya thomas laya,-- arancha gonzalez spain's new minister for foreign affairs. let's get you are stuck of the hour. cisco shares are falling. the quarter just reported was basically in line, but this was on already lowered expectations, while the outlook once again is a bit disappointing. the company is saying third-quarter sales could fall as much a 3.5 percent, while the street is expecting a drop of just 2%. this as internet providers cut back on a week i.t. spending backdrop. sales fell in all regions but china. sales dropped 30% on the trade war, and now the coronavirus looms. -- euro fell're a because of the u.k. this is a trend that no investor wants to see.

that is your stock of the hour. vonnie: thank you for that. just want to bring you some comments from president trump, who has been speaking at the white house on roger stone. he says those prosecutors quit because "they got caught in the act." he says they did not quit for moral reasons. he is rejecting that idea, that the doj prosecutors quit their for moral reasons. once again, president trump defending roger stone, a former ally. atse comments that were made the white house. this is bloomberg. ♪

♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets."

it's time for futures in focus. dan deming of kkm financial joins us from chicago. would you be brave enough to buy this small rally we are seeing today? dan: i don't know about that. i think fundamentally, there's too many headwinds right now. but we are to perera lee seeing crude try to build a base above the $50 a barrel -- we are temporarily seeing crude try to build a base above the $50 a barrel mark. it is sliding back toward the unchanged level as we speak. guy: in terms of what the iea was saying today, that seems consistent with what opec was saying as well. is it possible at this point to get your arms around what you think the demand hit is going to look like and how sustained it is going to be? dan: it is very difficult, and i think that is why you see the market being very volatile. it feels like maybe the market yesa little bit oversold,

we are still seeing crude hold about $50 a barrel. i think it is a little too soon to call a bottom here, but from a technical standpoint, we are still holding those lows. technical damage unless we break $40 a barrel. guy: we have seen the dollar not getting that today, so that could be a factor. nevertheless, if the dollar keep stngenat is a sell signal as well. dan: yeah, that is a headwind. maybe the market got a little overdone. the one thing to point out today, seeing a lot of put option action in march. there's a lot of hedging going on today. guy: it's been great seeing you. thanks, dan. dan deming of kkm financial joining us out of the cme. coming up in the next hour, my interview with the airbus ceo dione for a -- airbus ceo

guillaume faury. that is coming up. i look at markets in the u.s., we are slightly down on the s&p 500 in spite of some nice bounces for companies such as equifax and applied materials on earnings. a few stocks dragging on the s&p, including netapp. it cut its outlook and stopped any hopes the street had. overall, a little but of risk off in the market today, not only thanks to earnings, but also this reacceleration of coronavirus outbreak. this is bloomberg. ♪

guy: the pound jumps and his replacement. unable to resist boris johnson.

what impact will coronavirus have on the eu's economic growth? we are going to be joined life by valdis dombrovskis. ceo was being investigated over his ties to jeffrey epstein. we are going to hear from jes staley. we are now counting you down to the european close here on "bloomberg markets." ♪ vonnie: we are off our lows in the u.s.. plenty of good earnings out there. but we did start out the morning with a lot of jitters regarding the exponential increase in coronavirus diagnoses. this after the methodology -- was changed. gilts. 161. and a pause